At $800, a fixed-lens digital camera is a dicy "investment" compared to an interchangable-lens system camera, which at this point can be had for considerably less. I suspect Canon's finally come to grips with the parasitic relationship between the S and G series cameras and are differentiating them in a meaningful way by boosting the G's imager size.

I can't see a 1.5" sensor fitting into a camera any smaller than the EPM1 and the Panasonic 14-42x.

It could have a 1.5" sensor and be mirrorless it would just be atleast the size of an EPM1. You can't have a truly pocketable large sensor camera. It will always be a belt pouch, purse, or jacket pocket. What I like about the EPM1 and 14 pancake is that it will fit in many backpack hip belt pockets.

Maybe you could make it slight thicker and have the lens collapse into the registration distance. It would be a very impressive feat to get a 28-85 equiv with large sensor in a LX-5 package. But what makes this rumour impossible is the rumoured f2.5 speed on the wide side of the lens. A full stop faster than common kit lenses.

So either cannon made the most amazing camera ever, the sensor is actually just a 2/3 sensor, or the camera is G3 sized.

I stand corrected - the new Canon has a HUGE sensor in a body not much larger than the G12:

http://www.robgalbraith.com/bins/content_page.asp?cid=7-11673-12227

For folks who want high quality images in a body with a non-interchangeable zoom lens, this is a game changer. I suspect a lot of people will jump on this, especially every professional in the Canon camp.

Thats impressive, 2.8 at the wide angle, 5.8 at 112 equivelent. Essentially a 4/3's as the crop factor is 1.85 and it is 4/3 aspect ratio. I am interested to see how the sensor performs compared to the latest panasonic sensors. I like that they stopped at 14 megapixals and didn't cram 16 on there like panasonic did.

116 x 80 x 65 compared to the EPM1 110 x 63.7 x 34 (No lens). So the camera size is roughly comapable to the GF3/EPM1 with the 14-42x but 2/3rds of a stop faster at the wide end and 25% longer.

You give up the ability to go wider, longer, or faster since you can't change lenses and you don't have an upgrade path as sensor technology improves but this is definately a compelling camera. As long as you are comfortable with the lens not being able to do thin depth of field at portrait lengths this is a pretty could little camera.

I would definately put it on the short list for a backpacking camera especially if after the initial sales the price drops to the $600 range.

Most people who buy an entry level DSLR never remove the kit zoom lens. Nor do they make any use of the optical viewfinder -- as ludicrous as it looks, they hold their Canon Rebel out at arms length, composing and shooting through the LCD using live view.

So now we have a G-series Canon with a wider zoom range standard lens, in a smaller size, lower weight, and at comparable cost. I expect this will end up in every pro and enthusiast photographer's pocket -- but I also wonder if it will cannibalize low-end DSLR sales. I know lots of non-photographers who want a step up in quality, but they hate the large bulky DSLR cameras (even though I think a Rebel is positively tiny.) Now they have another choice, and one that is much easier conceptually to deal with since it has a single attached lens, a built in flash, etc.

I'll certainly be recommending this to family and friends who want better image quality in a smaller, easier package.

"Most people who buy an entry level DSLR never remove the kit zoom lens. Nor do they make any use of the optical viewfinder -- as ludicrous as it looks, they hold their Canon Rebel out at arms length, composing and shooting through the LCD using live view."

Don't they have any idea what that does to battery life? Maybe they just don't care.

I go out for days of backpacking at a time with a DSLR, and I leave the Live View off and leave the post-shot review time for about two seconds. That way, I can keep going and keep shooting, even with lens IS spun up. I will carry one spare battery, but I can't remember using it in a year.

"Most people who buy an entry level DSLR never remove the kit zoom lens. Nor do they make any use of the optical viewfinder -- as ludicrous as it looks, they hold their Canon Rebel out at arms length, composing and shooting through the LCD using live view."

Where do you get that? It certainly wasn't true when I first got into DSLRs. Nor do any of the 3 other family members I recommended entry level DSLRs to. Of course they were buying Nikon! ;)

But really. They all either have multiple lenses from the start or borrow one from one of the other guys. And not a one has ever composed with anything other than the viewfinder.

All I can say is that I see this all the time here on our college campus. Hold the DSLR out at arms length to shoot.... And don't get me started on the lens hood mounted backwards on the lens. ("But it came out of the box that way." --serious response.)

The consumer DSLRs get marketed to people who want to step up in quality from their p+s camera, but who are not otherwise photo enthusiasts. The classic "new mom gets a Canon Rebel" market. When my colleagues ask me what camera to buy for a non-enthusiast, they are all looking at DSLR kits. I tend to point them in the m4/3 direction, but I'll add the new Canon to the short list.

"And don't get me started on the lens hood mounted backwards on the lens."

At least it's consistent with how they wear their ballcaps (offa my lawn, the lot of ya!).

Absent any information on actual performance, the G1X mostly looks like a way to harvest money from existing Canon owners (taking, as it does, many Canon slr accessories). But unless it does something spectacular that no other camera can, one's money would be better invested in a compact system camera. If your budget is an equivalent $800 and 19 ounces, you can get a lot more camera, a lot more flexibility and a lot less obsolescence.